Welcome
It’s good to have alternatives
Alternative investing has traditionally been confined by high minimum investment levels, operational complexities, and strict asset and income threshold requirements, limiting access to institutions and high net-worth individuals.
At Franklin Templeton, we’re committed to breaking down these barriers with a clear mission to democratise alternative investing, transforming it into an accessible and essential source of returns for all.
Navigating the complexities of modern finance requires a diversified approach. Liquid alternatives are essential tools for investors looking to optimize their portfolios and capitalize on new opportunities.”
-Tariq Ahmad, Head of APAC
Watch our Talking Heads video series to learn more about how alternative investments can benefit you.
Our alternative investment capabilities
At Franklin Templeton, our extensive asset class coverage ensures that we have the flexibility and expertise to provide tailored solutions for our clients’ diverse financial needs.
Private equity
Private equity involves investing in privately held companies that aren’t listed on the stock market.
These investments can range from startups to established businesses, offering opportunities for growth at various stages.
Private credit
Private credit involves investing in various types of debt provided directly to companies or individuals, bypassing traditional banks.
This can offer unique opportunities for income and diversification.
Digital assets
Digital assets include electronic forms of assets like cryptocurrencies
(e.g., Bitcoin and Ethereum), digital tokens, and blockchain-based assets, offering new opportunities for investment and diversification.
Venture capital
Venture capital focuses on early-stage, high-growth companies by investing for equity ownership.
This approach supports rapid growth and aims to make money when these companies are bought or go public, taking advantage of their innovation and substantial expansion potential.
Real estate
Real estate involves investing in various properties such as:
residential homes, commercial buildings, land, and Real Estate Investment Trusts (REITs). This asset class offers stability, income and potential long-term growth, appealing to investors looking to diversify in the dynamic property market.
Hedged strategies
Hedged strategies use various techniques to reduce overall risk in a portfolio.
These methods include derivatives, short selling* and alternative investments, providing a diversified and resilient approach to investing.
Products corresponding to each capability may not be available for distribution in all jurisdictions and prospective investors should confirm availability with their local Franklin Templeton representative before making any plans to invest.
*Short selling is a trading strategy where investors speculate on a stock’s decline. They are selling borrowed stocks which they anticipate will decrease in value, with the plan to repurchase them once the price has fallen.
Our family of alternative investment specialists
At Franklin Templeton, we are dedicated to expanding our alternative investment capabilities by acquiring and partnering with independent specialist investment managers. Each of these managers possesses deep expertise in a specific asset class with extensive experience managing assets for some of the world's largest institutions. This approach enables us to offer our clients access to innovative and institutional-quality products.
Established
1982Acquired by FT
2021Clarion Partners is one of the largest pure-play real estate investment managers offering a broad range of real estate strategies across the risk-return spectrum for global investors.
Established
1984Franklin Real Asset Advisors provides global expertise in private real estate funds, including core, non-core and impact investing strategies.
Established
2008/2002Acquired by FT
Acquired by FT 2019/2022BSP-Alcentra is one of the largest alternative credit asset managers globally, utilising a multi-strategy approach targeting attractive opportunities in the global credit markets.
Established
1994Acquired by FT
2022Lexington Partners is one of the world's largest managers of secondary private equity and co-investment funds.
Established
1994Franklin Templeton Investment Solutions (FTIS) Absolute Return Portfolio Management team is a well-established team with deep experience in hedge fund investing. The team provides a full range of hedge fund investment capabilities covering all aspects of hedge fund and liquid alternatives.
Team formally established
2015Franklin Venture Partners is the private investing platform within the Franklin Equity Group focused on mid- and late-stage private companies with access to early-stage ideas sourced through industry, academic and venture capital networks.
Venture team formally established
2021Franklin Templeton Digital Assets has the expertise and resources to help advance your digital asset investment strategy or business. From launching the industry’s first tokenized money market fund, to funding blockchain start-up, Franklin Templeton Digital Assets is setting the pace of innovation for the global asset management industry.
Team formally established
2020Franklin Templeton Digital Assets has the expertise and resources to help advance your digital asset investment strategy or business. From launching the industry’s first tokenized money market fund, to funding blockchain start-up, Franklin Templeton Digital Assets is setting the pace of innovation for the global asset management industry.
Our knowledge hub
Private equity secondaries: A primary allocation in an evergreen private equity portfolio
Private equity is at a turning point, with investors and advisors exploring the best ways to allocate across sub-strategies. There is a compelling case for private equity secondaries serving as the cornerstone of a core/satellite evergreen model.
Private Markets Insights: Not a simple open and closed case
Evergreen and closed-ended / drawdown funds offer different paths to private markets - understanding their strengths can help investors optimise allocations.
What do tariffs mean for commercial real estate and CRE debt?
Benefit Street Partners believes that although stock market volatility is unsettling, it is not a cause for concern in the CRE sector. Instead, we should expect increased demand for CRE debt investments over the coming months and quarters.
Unlocking opportunities: Understanding the growing secondary market
The global secondary market has grown over the past three decades primarily because of the increased supply of capital committed to private investment funds, according to Lexington Partners. They believe the backdrop for the secondary market continues to remain attractive.
Glossary
Private credit/debt funds typically invest in non-listed debt issues, including bonds, notes and loans issued by private companies. Private debt has the potential to provide greater returns, control and reduced liquidity, than public markets.
Alternative credit invests in below-investment-grade fixed income sectors that are relatively illiquid. Alternative credit may not be available to investors for direct investment as individuals but can be accessed through professionally managed traditional mutual funds.
Unconstrained strategies trades securities with few restrictions on when and how they buy and sell. Many unconstrained strategies do set a formal or informal a target for volatility that provides a limitation on the level of risks incurred.
Hedge strategies (also referred to as alternative strategies) use both long and short positions in markets. Some of the most common strategies are long and short equity, global macro, relative value and credit. Hedge strategies appeal to investors who are looking to diversify their investment, in an attempt to minimise market beta returns while seeking alpha and risk-adjusted returns.
Real assets typically invest in tangible assets that derive value from their substance and physical presence. These include real estate, public and private infrastructure, natural resources, precious metals and commodities.
- Annualised standard deviation: A measure of the degree to which an investment’s or index’s return varies from the average of its previous returns. The larger the standard deviation, the greater likelihood (and risk) that the performance will fluctuate from the average return.
- Cumulative return: Cumulative return shows the change in the investment’s or index’s value over the time period indicated.
Important Information
Investments entail risks, the value of investments can go down as well as up and investors should be aware they might not get back the full value invested.
Individual securities mentioned are intended as examples only and are not to be taken as advice nor are they intended as a recommendation to buy or sell any investment or interest.
Investment risks
Private equity & venture capital investments involve a high degree of risk and are suitable only for investors who can afford to risk the loss of all or substantially all of such investment. Private equity investments and vehicles that invest in them should be considered illiquid and their performance may be volatile. There can be no assurance that any investment will be adequately compensated for risks taken.
Private credit investments including private debt and loans are suitable only for investors who can bear the risks associated with private market investments with potential limited liquidity.
Digital asset investments have historically been subject to greater volatility of returns with additional risks associated with the issuance, redemption, transfer, custody and record keeping of shares maintained and recorded primarily on a blockchain.
Real estate investments should be viewed as a long-term investments with limited liquidity and are suitable only for investors who can afford to risk the loss of all or substantially all of such investment.
Hedged strategy investments can be complex and require a thorough understanding of the underlying instruments and strategies.
This document is intended to be of general interest only. This document should not be construed as individual investment advice or offer or solicitation to buy, sell or hold any shares of fund or security. The information provided for any individual security mentioned is not a sufficient basis upon which to make an investment decision. Investment involves risks. Value of investments may go up as well as down and past performance is not an indicator or a guarantee of future performance. The investment returns are calculated on NAV to NAV basis, taking into account of reinvestments and capital gain or loss. The investment returns are denominated in stated currency, which may be a foreign currency other than USD and HKD (“other foreign currency”). US/HK dollar-based investors are therefore exposed to fluctuations in the US/HK dollar / other foreign currency exchange rate. Please refer to the offering documents for further details, including the risk factors.
The data, comments, opinions, estimates and other information contained herein may be subject to change without notice. There is no guarantee that an investment product will meet its objective and any forecasts expressed will be realized. Performance may also be affected by currency fluctuations. Reduced liquidity may have a negative impact on the price of the assets. Currency fluctuations may affect the value of overseas investments. Where an investment product invests in emerging markets, the risks can be greater than in developed markets. Where an investment product invests in derivative instruments, this entails specific risks that may increase the risk profile of the investment product. Where an investment product invests in a specific sector or geographical area, the returns may be more volatile than a more diversified investment product. Franklin Templeton accepts no liability whatsoever for any direct or indirect consequential loss arising from use of this document or any comment, opinion or estimate herein. This document may not be reproduced, distributed or published without prior written permission from Franklin Templeton.
Any share class with “(Hedged)” in its name will attempt to hedge the currency risk between the base currency of the Fund and the currency of the share class, although there can be no guarantee that it will be successful in doing so. In some cases, investors may be subject to additional risks.
Please contact your financial advisor if you are in doubt of any information contained herein.
For UCITS funds only: In addition, a summary of investor rights is available from here. The summary is available in English and Chinese.
The fund(s)/ sub-fund(s) are notified for marketing in various regions under the UCITS Directive. The fund(s)/ sub-fund(s) can terminate such notifications for any share class and/or sub-fund at any time by using the process contained in Article 93a of the UCITS Directive.
For the avoidance of doubt, if you make a decision to invest, you will be buying units/shares in the fund(s)/ sub-fund(s) and will not be investing directly in the underlying assets of the fund(s)/ sub-fund(s).
For AIFMD funds only: The Franklin Floating Rate Fund PLC (the Fund) is an investment company with variable capital incorporated in Ireland on 1 December 1999 as a public limited company under registration number 316174. The Fund is authorised by the Central Bank of Ireland as a designated investment company pursuant to to Section 1395 of Part 24 of the Companies Act 2014. The Fund's registered office is Capital Dock, Sir John Rogerson's Quay, Dublin Ireland.
In addition, a summary of investor rights is available from here. The summary is available in English and Chinese.
The fund(s)/ sub-fund(s) are notified for marketing in various regions under the AIFMD Directive. The fund(s)/ sub-fund(s) can terminate such notifications for any share class and/or sub-fund at any time by using the process contained in Article 32a of the AIFMD Directive.
For the avoidance of doubt, if you make a decision to invest, you will be buying units/shares in the fund(s)/ sub-fund(s) and will not be investing directly in the underlying assets of the fund(s)/ sub-fund(s).
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This document is issued by Franklin Templeton Investments (Asia) Limited and has not been reviewed by the Securities and Futures Commission of Hong Kong.
Unless stated otherwise, all information is as of the date stated above. Source: Franklin Templeton.